LAW
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Ohio Laws and Rules
(A) Each loan application made pursuant to the family farm loan program shall be accompanied by a farm business plan and management strategy. A farm business plan and management strategy shall contain, at a minimum, detailed and supported information under the following headings:
(1) Agricultural business for which loan will be used.
Applicant shall provide a detailed description of the type of agricultural business for which the loan will be used.
(2) Marketing plan for business.
(a) Applicant shall provide a detailed five-year marketing plan for the farm business related to the loan. The marketing plan shall be based upon any reasonable format for such plans acceptable to the lending institution and the Ohio department of agriculture, and generally used in and by the agricultural community.
(b) The lending institution, the agriculture financing commission, and/or the director may require further information regarding the plan from applicants.
(3) Statement of applicant experience and training.
(a) Applicant shall provide a list of educational achievements.
(b) Applicant shall reference all degrees received and all farm-related training and certification.
(c) Applicant shall provide a detailed list of training in any area of farming related to the farming business which is the subject of the loan.
(d) Applicant shall specify in detail all experience on a working farm, including family farm experience and other experience.
(e) Applicant shall state how their farm-related education and experience relates to the farm business which is the subject of the loan.
(4) Budget and cash flow projections for existing and/or planned farm business.
Applicant shall prepare and present to the lending institution three-year budget and cash flow projections for the existing and/or planned business which is the subject of the loan application. Such projections shall include all projected income and expenses for the business for three years from the date of the loan application and shall include, at a minimum:
(a) Cash operating expenses;
(b) Non-farm income and expenses;
(c) Repayment ability and capacity from planned business;
(d) Repayment ability and capacity from existing business and other income; and
(e) Debt repayment schedule, including interest and principal.
(B) Applicant shall work with lending institutions in the development of their farm business plans and management strategies and, wherever feasible, shall use forms required by lending institutions to meet the requirements of paragraph (A) of this rule.
R.C. 119.032 review dates: 08/13/2003 and 08/13/2008
Promulgated Under: 119.03
Statutory Authority: 901.82
Rule Amplifies: 901.82
Prior Effective Dates: 8/7/89